Paytm’s expected $2.2bn IPO fuels India market

18 July, 2021 12:00 AM printer

MUMBAI: Digital payments pioneer Paytm on Friday took a major step towards launching India’s biggest initial public offering, telling regulators that it would seek to sell $2.2 billion in shares.

The offering is the latest in a wave of IPOs in India, with food delivery firm Zomato this week raising $1.3 billion, reports AFP.

Paytm is backed by the Ant Group of Chinese tycoon Jack Ma, which holds a nearly 30 percent stake, along with Masayoshi Son’s Softbank Vision Fund, Berkshire Hathaway and other high-profile investors.

Founder and chief executive Vijay Shekhar Sharma, who has a net worth of $2.3 billion according to Forbes, holds just under 10 percent of the company.

As a part of the IPO, Paytm will issue fresh shares worth 83 billion rupees and sell an equal amount of shares through a sale offer, according to its prospectus filed with Indian regulators.

Since 2010, Paytm has become a key digital payments enterprise in a country dominated by cash transactions.